a) The four factors of production are land, labor, capital, and entrepreneurship. For the manufacturing process of The Book Store’s new stationary line, the inputs required for each factor of production are as follows:
1. Land:
- Location for manufacturing facility: Wendy will need to find a suitable location with enough space to set up a manufacturing facility for producing the stationary line.
- Access to raw materials: Depending on the type of stationary being produced, Wendy will need access to specific raw materials such as paper, ink, and other components.
2. Labor:
- Skilled workers: Wendy will need to hire skilled workers such as designers, production staff, and quality control personnel to ensure the stationary line is produced efficiently and effectively.
- Administrative staff: In addition to production staff, administrative staff will be needed to handle tasks such as accounting, marketing, and customer service.
3. Capital:
- Machinery and equipment: Wendy will need to invest in machinery and equipment such as printers, cutting machines, and packaging equipment to manufacture the stationary line.
- Working capital: Wendy will need working capital to cover expenses such as raw materials, utilities, and payroll during the manufacturing process.
4. Entrepreneurship:
- Product development: Wendy will need to use her entrepreneurial skills to develop new and creative designs for the stationary line that will appeal to customers.
- Strategic planning: Wendy will need to develop a business plan and strategy for the expansion of the book store and production of the stationary line.
By considering these four factors of production and their respective inputs, Wendy can successfully plan and execute the manufacturing process for The Book Store’s new stationary line.
Case study
The book store is a business which sells a variety of books to suit any lifestyle, from bestselling novels, educational material to children’s books.
The owner, Wendy Brooks, has realised that there is a demand for creative stationery based on her customers’ requests. She decided to expand her business by producing a stationary line including creative paper, envelopes, notepads, creative stamps, craft pens and wrapping paper which she will sell in store.
Wendy is considering using semi-finished products to produce the stationery and wants to import the creative stamps and craft pens in china. Wendy plans to apply for a business loan in order to gain the capital for the expansion of the book store. Wendy knows that she has to conduct thorough research before starting this new venture.
You are required to assist Wendy by conducting the research and preparing a typed investigative report on the following points:
a) The FOUR factors of production (inputs) needed for the manufacturing process of The Book Store’s new stationery-line. You are required to investigate two inputs for each factor of production.
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